Problem-based learning (PBL) is an instructional approach that challenges students to think critically, work cooperatively in groups to seek solutions to real world problems. These problems serve as cognitive stimulus to arouse students' curiosity and initiate learning of disciplinary subject content matter. Authentic assessment modes play a key role in the efficacious implementation of a PBL curriculum. The discussions in this paper are based upon the learning experiences of students in a tertiary institution that has developed its curricular approach based upon PBL methodology. The key issues focusing on the strengths and drawbacks of authentic assessment modalities in a PBL environment are explored.